Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has completed its initial on-market buy-back of fully paid ordinary shares with almost 300 million shares acquired by the company representing around 5% of the pre-share buy-back issued capital.
The cost of the buy-back of 249,999,999 shares was A$3.13 million with a Volume Weighted Average Price (VWAP) of A$0.0125, which was equal to the VWAP for all shares traded during the period of the share buy-back.
Brookside, which accounted for around 18% of the total volume traded during the buy-back period, has lodged a ‘final buy-back notification’ and a ‘notice of cessation of securities’, and shares acquired under the buy-back have been cancelled.
This leaves the company, which is focused on oil and gas in the Anadarko Basin of Oklahoma, USA, with a total of 4,764,545,628 fully paid ordinary shares on issue.
Consolidation of register
Trading activity during the buy-back period, launched in late April 2023, also resulted in some consolidation within Brookside’s Share Register, which the company has welcomed.
As a result, there are several new entrants to the company’s Top 20 while a number of existing larger shareholders have added to their holdings.
The consolidation of holdings now sees the Top 50 shareholders holding more than 43% of the post buy-back shares on issue, which is up from 33% this time last year.
Brookside said it was pleased with this consolidation “and we thank our existing shareholders for their continued support and welcome the new shareholders at this exciting time for the business”.
Further buy-backs
The company now intends to seek shareholder approval for a new buy-back which would be beyond the 10% in 12-months limitation.
This new buy-back is targeted to start upon completion of the company's Flames-Maroons Development Program (FMDP), however, once shareholder approval has been received, it will have flexibility to consider beginning the new buy-back sooner (ie before the completion of the FMDP).
This may occur if, for example, Brookside sees a period of sustained higher energy prices and/or it generates cash flow in excess of what is required for ongoing development of the SWISH AOI reserves.
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